Jason Industries sells Metalex business
Jason Industries Inc. announced the sale of its Metalex business within the Engineered Components segment to UPG LLC for approximately $5 million cash and assumption of certain liabilities.
“The divestiture of Metalex further simplifies our portfolio to the remaining Osborn and Milsco businesses, Jason’s two pillars due to their market leadership, diverse sources of revenue and scalability,” said Brian Kobylinski, chairman and chief executive officer of Jason. “We thank our Metalex employees for their hard work and wish them continued success as part of the UPG organization.”
In its most recent quarter, Jason Industries reported a net loss of $30 million and said that it was exploring strategic alternatives, including a potential sale of the company.
Based in Libertyville, Illinois, Metalex is the largest producer of expanded metal in North America and a specialist in the perforated metal market.
The business being sold contributed approximately $39 million to Jason’s trailing 12-month sales ending Sept. 27, 2019. The Metalex operations in the United States and Mexico will be organized as a new subsidiary of UPG, and the approximately 200 employees will become employees of that subsidiary. UPG’s portfolio of companies offers steel processing and production capabilities.
Jason was advised on the transaction by BMO Capital Markets Corp. and Godfrey & Kahn, S.C.. The Metalex business will be reported within discontinued operations beginning in the fourth quarter of 2019.
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